Perhaps the busiest and most exciting time of the year to be a small business owner is during the holiday shopping season, which seems to kick off earlier and earlier every year. The weeks that characterize the heart of holiday shopping can actually make or break a business’ budget for the entire year, since customers tend to spend between three and four times more money during these weeks as they would during the rest of the year on an impulse shopping trip. With the stakes that high, most small business owners are looking for ways to maximize their inventory, stay ahead of customer demands, and easily have the inventory and staffing levels needed to ensure a smooth and effective holiday buying period.
One of the best ways to do this is with a small loan that can help ramp up inventory before the holiday season officially kicks off. Thanks to yearlong analytical data, most companies can estimate with pretty good accuracy which products or services will be most in-demand between the first weeks of November and the end of the year. By forecasting this information, using a strategic loan, and preparing in advance, businesses can ensure themselves a great deal of financial benefit that will more than compensate for the cost of this short-term loan.
Prevent Inventory Shortfalls by Preparing in Advance
The easiest way to lose out on customer business during the holiday season is to simply lack the products needed to close the sale. This is a problem that happens frequently among small businesses, since many people believe that their existing inventory pattern will be able to keep up with holiday demand. With per-capita spending increasing between three and four times during this period, however, this is a misconception that can haunt businesses long after the holiday decorations come down and the new year has reset the balance sheets.
A small loan, taken in advance of the holiday season, allows businesses to ramp up production and ensure high inventory levels throughout November and December. This inventory allows for a far greater number of successful, closed sales, and that means businesses will increase their bottom line throughout the Christmas season. Simply having enough inventory on hand can make up for sales shortfalls that might have occurred throughout the year during slower periods and lower overall demand. Furthermore, the greater likelihood of closing sales will more than make up for the loan’s potential fees as the time of issue.
Be Ready to Hire New Staff and Handle an Influx of New Customers
Another common problem during the holiday season is that the heightened number of shoppers overwhelms a small business’ existing staff, leaving them frenzied and frantic as they seek to help each customer, close each sale, and address each customer service issue with a calm and reassuring demeanor. That’s why so many larger businesses take on temporary staff that can help these issues be resolved a bit more quickly and easily, and with greater peace of mind.
A short-term loan taken out in advance of the holiday season can give smaller businesses the funds they need to secure temporary staff members through the holiday season and into January. Increased staff levels are essential to keeping customers not only satisfied, but also moving through checkout lines toward a successful transaction. This improved customer experience during the holidays will cultivate repeat buyers, more successful sales, and a better financial picture at the end of the year that will justify the original loan taken out ahead of time.
Holiday Marketing Can Benefit from Increased Spending
Small businesses need to make sure that their message can be heard loudly and clearly, even as their larger local and national competitors gear up with radio spots, television ads, and social media ad placement. A holiday loan makes it easier to saturate each of these outlets with keywords, personal appeals, and viral marketing strategies that will bring in new customers, spotlight the company’s website, and create a lasting presence alongside national brands.
Holiday Loans are a Common Practice and Good Business
To prepare for the holiday season, today’s businesses need to increase production, boost staff levels, and enhance the universal nature of their marketing message. That’s best done with a small infusion of extra capital, usually from a business loan in advance. These loans will pay off in terms of customer outreach, satisfaction, and spending, practically paying for themselves by the close of the calendar year.